ECONOMICS
DEMAND
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Raw Bauxite in a South African mine
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A hammer used in framing a house
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A worker hired to repair engines
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Trees used to make paper
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Detailed explanation-1: -When economists refer to capital, they are referring to the assets-physical tools, plants, and equipment-that allow for increased work productivity. Capital comprises one of the four major factors of production, the others being land, labor, and entrepreneurship.
Detailed explanation-2: -(NOTE: A hammer is a capital resource. Nails are intermediate goods. Both capital re-sources and intermediate goods are goods that are produced in order to produce other goods. Producing both capital resources and intermediate goods requires human, capital and natural resources.
Detailed explanation-3: -Businesses invest in units of new capital of many different types, such as hammers, trucks, computers, and buildings.
Detailed explanation-4: -Physical capital refers to the human-created tangible assets or inputs that are used to support the production of goods and services. It is one of the main factors of production in classical and neoclassical economics. Examples of physical capital include machinery, buildings, vehicles, equipment, etc.